STOP THE VENDOR CENTRAL (1P) PROFIT LEAK

STOP THE VENDOR CENTRAL (1P) PROFIT LEAK

ASIN-Level Profitability Analysis

Revenue growth means nothing if individual products lose money. Most vendors can't see true ASIN profitability once you factor in co-op deductions, chargebacks, advertising costs, and returns. Without product-level P&L analysis, you're subsidising loss-makers with winners eroding total margin.

Revenue growth means nothing if individual products lose money. Most vendors can't see true ASIN profitability once you factor in co-op deductions, chargebacks, advertising costs, and returns. Without product-level P&L analysis, you're subsidising loss-makers with winners eroding total margin.

20-30%

20-30%

SKUs Typically Unprofitable

SKUs Typically Unprofitable

10+ years

10+ years

Amazon Data Expertise

Amazon Data Expertise

Subject to Terms and Conditions

Subject to Terms and Conditions

Subject to Terms and Conditions

Amazon Profit Modeling

What Is ASIN-Level Profitability Analysis?

Our ASIN Profitability service provides comprehensive product-level financial analysis that calculates true net profit for every SKU after accounting for all Amazon costs, deductions, chargebacks, advertising, returns, and operational expenses. We deliver actionable insights that identify profit drivers, expose margin destroyers, and provide clear recommendations for portfolio optimisation, pricing strategy, and resource allocation decisions.

Amazon Profit Forecasting

What Makes ASIN-Level Profitability Analysis Unique?

Leaders tell us Amazon reimbursement recovery is complex due to opaque deductions and dispute rules.
Here's why this process indeed matters:

Proactive management of account health and chargeback issues.

True Cost Accounting

Comprehensive P&L incorporating all direct and allocated costs co-op, chargebacks, freight, advertising, returns, shrinkage that standard reporting misses.

Proactive management of account health and chargeback issues.

Profitability Segmentation

Strategic classification of products into profit tiers (stars, earners, drains, losers) enabling portfolio decisions based on contribution margin, not revenue.

Proactive management of account health and chargeback issues.

Decision-Ready Insights

Clear action recommendations for each SKU: optimise, reprice, discontinue, invest, or maintain transforming data into strategic decisions.

Proactive management of account health and chargeback issues.

Scenario Modeling

Financial impact analysis showing how pricing changes, cost reductions, or marketing adjustments affect profitability at both SKU and portfolio levels.

Proactive management of account health and chargeback issues.

Ongoing Monitoring

Continuous profitability tracking with automated alerts when products cross thresholds catching margin erosion before it compounds into significant losses.

Process steps:

01

Term Analysis & Benchmarking

02

Profitability Calculation & Segmentation

03

Analysis & Recommendations

04

Implementation & Ongoing Tracking

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Why Choose ASIN-Level Profitability Analysis

Transforming Data Into Profitable Decisions

Profit Clarity

Complete transparency into which products generate actual profit versus which destroy margins once all costs are properly allocated.

Profit Clarity

Complete transparency into which products generate actual profit versus which destroy margins once all costs are properly allocated.

Profit Clarity

Complete transparency into which products generate actual profit versus which destroy margins once all costs are properly allocated.

Strategic Portfolio Management

Data-driven framework for deciding which products to grow, maintain, optimise, or discontinue based on true economic contribution.

Strategic Portfolio Management

Data-driven framework for deciding which products to grow, maintain, optimise, or discontinue based on true economic contribution.

Strategic Portfolio Management

Data-driven framework for deciding which products to grow, maintain, optimise, or discontinue based on true economic contribution.

Marketing Efficiency

Redirect advertising budget from unprofitable SKUs to high-margin products, dramatically improving overall marketing ROI and profit contribution.

Marketing Efficiency

Redirect advertising budget from unprofitable SKUs to high-margin products, dramatically improving overall marketing ROI and profit contribution.

Marketing Efficiency

Redirect advertising budget from unprofitable SKUs to high-margin products, dramatically improving overall marketing ROI and profit contribution.

Pricing Optimisation

Identify products with pricing power where increases improve margins without volume impact, and products requiring cost reduction for viability.

Pricing Optimisation

Identify products with pricing power where increases improve margins without volume impact, and products requiring cost reduction for viability.

Pricing Optimisation

Identify products with pricing power where increases improve margins without volume impact, and products requiring cost reduction for viability.

Negotiation Leverage

Product-level economics provide specific data for vendor negotiations, supplier discussions, and strategic decisions about channel allocation.

Negotiation Leverage

Product-level economics provide specific data for vendor negotiations, supplier discussions, and strategic decisions about channel allocation.

Negotiation Leverage

Product-level economics provide specific data for vendor negotiations, supplier discussions, and strategic decisions about channel allocation.

FAQ

Frequently asked questions

FAQ

Frequently asked questions

Why can't we just use Vendor Central reports for profitability?

Vendor Central shows gross revenue minus obvious deductions but misses critical costs: allocated co-op, chargebacks, freight allowances, return costs, advertising by SKU, and proper overhead allocation.

Why can't we just use Vendor Central reports for profitability?

Vendor Central shows gross revenue minus obvious deductions but misses critical costs: allocated co-op, chargebacks, freight allowances, return costs, advertising by SKU, and proper overhead allocation.

What costs should be included in ASIN-level P&L?

Complete ASIN P&L includes: wholesale purchase price (COGS), inbound freight, co-op allocations (both required and incremental), all chargebacks (compliance, logistics, shortage), advertising costs by SKU, return costs and shrinkage, payment term financing costs, and allocated overhead.

What costs should be included in ASIN-level P&L?

Complete ASIN P&L includes: wholesale purchase price (COGS), inbound freight, co-op allocations (both required and incremental), all chargebacks (compliance, logistics, shortage), advertising costs by SKU, return costs and shrinkage, payment term financing costs, and allocated overhead.

How often should profitability be analysed?

Monthly minimum for comprehensive portfolio reviews. Weekly for key products and new launches. Continuous monitoring with automated alerts for products crossing profitability thresholds. Quarterly deep-dives for strategic portfolio decisions.

How often should profitability be analysed?

Monthly minimum for comprehensive portfolio reviews. Weekly for key products and new launches. Continuous monitoring with automated alerts for products crossing profitability thresholds. Quarterly deep-dives for strategic portfolio decisions.

What do we do with unprofitable products?

Options include: price increases if market allows, cost reduction (renegotiate supplier terms, optimise packaging), marketing elimination (stop promoting margin destroyers), channel reallocation (move to 3P), or discontinuation. Decision depends on strategic importance and fix feasibility.

What do we do with unprofitable products?

Options include: price increases if market allows, cost reduction (renegotiate supplier terms, optimise packaging), marketing elimination (stop promoting margin destroyers), channel reallocation (move to 3P), or discontinuation. Decision depends on strategic importance and fix feasibility.

Can profitability analysis help with new product decisions?

Absolutely. Model expected profitability before launch using benchmarks from similar products, category data, and realistic cost structures. This prevents launching products that will never achieve acceptable margins.

Can profitability analysis help with new product decisions?

Absolutely. Model expected profitability before launch using benchmarks from similar products, category data, and realistic cost structures. This prevents launching products that will never achieve acceptable margins.

How do we maintain profitability as Amazon changes fees?

Continuous monitoring catches fee changes immediately. Established profitability frameworks enable rapid impact analysis when Amazon changes co-op rates or introduces new fees, you immediately understand portfolio impact and can make informed pricing or cost adjustments.

How do we maintain profitability as Amazon changes fees?

Continuous monitoring catches fee changes immediately. Established profitability frameworks enable rapid impact analysis when Amazon changes co-op rates or introduces new fees, you immediately understand portfolio impact and can make informed pricing or cost adjustments.

Why can't we just use Vendor Central reports for profitability?

Vendor Central shows gross revenue minus obvious deductions but misses critical costs: allocated co-op, chargebacks, freight allowances, return costs, advertising by SKU, and proper overhead allocation.

What costs should be included in ASIN-level P&L?

Complete ASIN P&L includes: wholesale purchase price (COGS), inbound freight, co-op allocations (both required and incremental), all chargebacks (compliance, logistics, shortage), advertising costs by SKU, return costs and shrinkage, payment term financing costs, and allocated overhead.

How often should profitability be analysed?

Monthly minimum for comprehensive portfolio reviews. Weekly for key products and new launches. Continuous monitoring with automated alerts for products crossing profitability thresholds. Quarterly deep-dives for strategic portfolio decisions.

What do we do with unprofitable products?

Options include: price increases if market allows, cost reduction (renegotiate supplier terms, optimise packaging), marketing elimination (stop promoting margin destroyers), channel reallocation (move to 3P), or discontinuation. Decision depends on strategic importance and fix feasibility.

Can profitability analysis help with new product decisions?

Absolutely. Model expected profitability before launch using benchmarks from similar products, category data, and realistic cost structures. This prevents launching products that will never achieve acceptable margins.

How do we maintain profitability as Amazon changes fees?

Continuous monitoring catches fee changes immediately. Established profitability frameworks enable rapid impact analysis when Amazon changes co-op rates or introduces new fees, you immediately understand portfolio impact and can make informed pricing or cost adjustments.

Contact us

Address

2 Leman Street,
London
E1W 9US

Contact us

Address

2 Leman Street,
London
E1W 9US

Contact us

Address

2 Leman Street,
London
E1W 9US